19.A 10% stock dividend was declared and distributed to shareholders of 60,000 outstanding shares ofMeadville Company’s $10 par value common stock; at that time the common stock’s market price was $32. Prepare the journal entry required by the stock dividend.
20.A sequence of events affecting the shareholders' equity section of Malabar Corporation follows:
A.On January 21, 8,000 shares of $10 par value common stock were issued for $160,000.
B.On May 16, a 3-for-1 stock split was distributed.
C.On December 23, $8,000 of cash dividends on outstanding common stock were declared. The dividends will be paid in 30 days.
For each entry, state how the event changed assets, liabilities, and shareholders' equity.
21.Immediately before a 15% stock dividend was declared and distributed on 20,000 shares of par $8 stock, the market price of the Coolidge Corporation’s stock was $18. Coolidge has total liabilities of $150,000 and total shareholders' equity of $450,000.
Required:
(1) Give the journal entry to record the declaration and distribution of the stock dividend.
(2) Calculate Coolidge’scurrent ratio immediately after the stock dividend and comment.
22.Immediately before a 3-for-1 stock split was declared and distributed on 20,000 shares of par $80 stock, Mikah Company has total liabilities of $260,000 and total shareholders' equity of $320,000. Calculate Mikah Company’s debt/equity ratio immediately after the stock split.
23.Immediately before a $4,000 cash dividend was declared on 20,000 shares of par $80 stock, Sea Breeze Corporation has total liabilities of $220,000 and total shareholders’ equity of $180,000. Calculate Sea Breeze’s debt/equity ratio before and after the declaration of the cash dividend and indicate the effect the declaration had on this ratio.